Gold Hits Fresh Record High on Fed Rate Cut Bets and Geopolitical Risks
Gold prices extended their rally and touched a new all-time high as safe-haven demand grew. The move was supported by geopolitical tensions, worries about a possible US government shutdown, and rising bets that the Federal Reserve may cut interest rates soon.
The US dollar has been weakening because traders expect the Fed to lower rates in the coming months. A weaker dollar usually boosts gold, making it more attractive for global investors.
In Washington, political divisions over the budget have increased the chances of a government shutdown. This uncertainty has pushed investors toward safe assets like gold, which is traditionally seen as a hedge in times of risk.
From a technical view, gold remains in an uptrend, but analysts warn that the market is now in overbought territory. This means that while prices are climbing, a short pause or small correction could happen before the next leg higher.
Impact:
Gold might continue to rise if economic data weakens and Fed rate cut hopes grow. However, gains could slow if the US dollar recovers or shutdown risks ease.